The tax advantages of a health savings account (HSA) are unique, even better than any IRA or 401(k) plan. As a result, an HSA is like a “super IRA,” and you should contribute as much as you can afford, subject to IRS limits on HSA contributions. Let’s dig into the details and reasons.
Who’s Eligible To Participate And What Are The Contribution Limits?
You’re eligible to contribute to an HSA if you participate in a high-deductible health plan (HDHP) and if your employer sponsors an HSA. The minimum deductible to qualify as an HDHP changes every year; for 2024, it’s $1,600 for individual coverage and $3,200 for family coverage. However, there are more qualifying details regarding HSAs and you should check with your health plan administrator to make sure you’re eligible to participate.
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